Based on various researches at Oak Spring University , Jpmorgan Elect PLC 0.01p is operating in a macro-environment that has been destablized by – wage bills are increasing, talent flight as more people leaving formal jobs, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings,
technology disruption, geopolitical disruptions, etc
Introduction to SWOT Analysis of Jpmorgan Elect PLC 0.01p
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Jpmorgan Elect PLC 0.01p can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jpmorgan Elect PLC 0.01p, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jpmorgan Elect PLC 0.01p operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Jpmorgan Elect PLC 0.01p can be done for the following purposes –
1. Strategic planning of Jpmorgan Elect PLC 0.01p
2. Improving business portfolio management of Jpmorgan Elect PLC 0.01p
3. Assessing feasibility of the new initiative in United Kingdom
4. Making a Misc. Financial Services sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Jpmorgan Elect PLC 0.01p
Strengths of Jpmorgan Elect PLC 0.01p | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jpmorgan Elect PLC 0.01p are -
High brand equity
– Jpmorgan Elect PLC 0.01p has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jpmorgan Elect PLC 0.01p to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Jpmorgan Elect PLC 0.01p has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Jpmorgan Elect PLC 0.01p staying ahead in the Misc. Financial Services industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Jpmorgan Elect PLC 0.01p has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Misc. Financial Services industry. Secondly the value chain collaborators of Jpmorgan Elect PLC 0.01p have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Jpmorgan Elect PLC 0.01p is present in almost all the verticals within the Misc. Financial Services industry. This has provided Jpmorgan Elect PLC 0.01p a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Misc. Financial Services industry
- digital transformation varies from industry to industry. For Jpmorgan Elect PLC 0.01p digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jpmorgan Elect PLC 0.01p has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Innovation driven organization
– Jpmorgan Elect PLC 0.01p is one of the most innovative firm in Misc. Financial Services sector.
Learning organization
- Jpmorgan Elect PLC 0.01p is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Jpmorgan Elect PLC 0.01p is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Jpmorgan Elect PLC 0.01p emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Jpmorgan Elect PLC 0.01p has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Analytics focus
– Jpmorgan Elect PLC 0.01p is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Misc. Financial Services industry. The technology infrastructure of United Kingdom is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to lead change in Misc. Financial Services
– Jpmorgan Elect PLC 0.01p is one of the leading players in the Misc. Financial Services industry in United Kingdom. Over the years it has not only transformed the business landscape in the Misc. Financial Services industry in United Kingdom but also across the existing markets. The ability to lead change has enabled Jpmorgan Elect PLC 0.01p in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Jpmorgan Elect PLC 0.01p in the Financial sector have low bargaining power. Jpmorgan Elect PLC 0.01p has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jpmorgan Elect PLC 0.01p to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Misc. Financial Services industry
– Jpmorgan Elect PLC 0.01p has clearly differentiated products in the market place. This has enabled Jpmorgan Elect PLC 0.01p to fetch slight price premium compare to the competitors in the Misc. Financial Services industry. The sustainable margins have also helped Jpmorgan Elect PLC 0.01p to invest into research and development (R&D) and innovation.
Weaknesses of Jpmorgan Elect PLC 0.01p | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jpmorgan Elect PLC 0.01p are -
Low market penetration in new markets
– Outside its home market of United Kingdom, Jpmorgan Elect PLC 0.01p needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring in Misc. Financial Services industry
– The stress on hiring functional specialists at Jpmorgan Elect PLC 0.01p has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
No frontier risks strategy
– From the 10K / annual statement of Jpmorgan Elect PLC 0.01p, it seems that company is thinking out the frontier risks that can impact Misc. Financial Services industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on Jpmorgan Elect PLC 0.01p ‘s star products
– The top 2 products and services of Jpmorgan Elect PLC 0.01p still accounts for major business revenue. This dependence on star products in Misc. Financial Services industry has resulted into insufficient focus on developing new products, even though Jpmorgan Elect PLC 0.01p has relatively successful track record of launching new products.
High cash cycle compare to competitors
Jpmorgan Elect PLC 0.01p has a high cash cycle compare to other players in the Misc. Financial Services industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the Misc. Financial Services industry, Jpmorgan Elect PLC 0.01p needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Employees’ less understanding of Jpmorgan Elect PLC 0.01p strategy
– From the outside it seems that the employees of Jpmorgan Elect PLC 0.01p don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Jpmorgan Elect PLC 0.01p has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– Jpmorgan Elect PLC 0.01p has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Jpmorgan Elect PLC 0.01p supply chain. Even after few cautionary changes, Jpmorgan Elect PLC 0.01p is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jpmorgan Elect PLC 0.01p vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Jpmorgan Elect PLC 0.01p has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Misc. Financial Services industry over the last five years. Jpmorgan Elect PLC 0.01p even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Jpmorgan Elect PLC 0.01p Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Jpmorgan Elect PLC 0.01p are -
Building a culture of innovation
– managers at Jpmorgan Elect PLC 0.01p can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Misc. Financial Services industry.
Buying journey improvements
– Jpmorgan Elect PLC 0.01p can improve the customer journey of consumers in the Misc. Financial Services industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Loyalty marketing
– Jpmorgan Elect PLC 0.01p has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Jpmorgan Elect PLC 0.01p to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Misc. Financial Services industry, but it has also influenced the consumer preferences. Jpmorgan Elect PLC 0.01p can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions in Misc. Financial Services industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Jpmorgan Elect PLC 0.01p in the Misc. Financial Services industry. Now Jpmorgan Elect PLC 0.01p can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Jpmorgan Elect PLC 0.01p can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Jpmorgan Elect PLC 0.01p in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Misc. Financial Services industry, and it will provide faster access to the consumers.
Learning at scale
– Online learning technologies has now opened space for Jpmorgan Elect PLC 0.01p to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jpmorgan Elect PLC 0.01p can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Jpmorgan Elect PLC 0.01p to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Misc. Financial Services industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Jpmorgan Elect PLC 0.01p can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Jpmorgan Elect PLC 0.01p can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jpmorgan Elect PLC 0.01p is facing challenges because of the dominance of functional experts in the organization. Jpmorgan Elect PLC 0.01p can utilize new technology in the field of Misc. Financial Services industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jpmorgan Elect PLC 0.01p can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Jpmorgan Elect PLC 0.01p External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Jpmorgan Elect PLC 0.01p are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Jpmorgan Elect PLC 0.01p in the Misc. Financial Services sector and impact the bottomline of the organization.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jpmorgan Elect PLC 0.01p can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Jpmorgan Elect PLC 0.01p prominent markets.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Jpmorgan Elect PLC 0.01p may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Misc. Financial Services sector.
Stagnating economy with rate increase
– Jpmorgan Elect PLC 0.01p can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Misc. Financial Services industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jpmorgan Elect PLC 0.01p in Misc. Financial Services industry. The Misc. Financial Services industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Jpmorgan Elect PLC 0.01p.
Consumer confidence and its impact on Jpmorgan Elect PLC 0.01p demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Misc. Financial Services industry and other sectors.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Jpmorgan Elect PLC 0.01p needs to understand the core reasons impacting the Misc. Financial Services industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Jpmorgan Elect PLC 0.01p has witnessed rapid integration of technology during Covid-19 in the Misc. Financial Services industry. As one of the leading players in the industry, Jpmorgan Elect PLC 0.01p needs to keep up with the evolution of technology in the Misc. Financial Services sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Jpmorgan Elect PLC 0.01p
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Jpmorgan Elect PLC 0.01p.
Shortening product life cycle
– it is one of the major threat that Jpmorgan Elect PLC 0.01p is facing in Misc. Financial Services sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Jpmorgan Elect PLC 0.01p will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Jpmorgan Elect PLC 0.01p Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Jpmorgan Elect PLC 0.01p needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Jpmorgan Elect PLC 0.01p is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Jpmorgan Elect PLC 0.01p is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Jpmorgan Elect PLC 0.01p to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Jpmorgan Elect PLC 0.01p needs to make to build a sustainable competitive advantage.
